Preisabschöpfung

Preisabschöpfung is a German term that translates to price skimming or price gouging depending on the context. In economic terms, it refers to the practice of setting a high initial price for a new product or service and then gradually lowering it over time. This strategy is often employed for innovative products or those with little initial competition, allowing a company to maximize profits from early adopters who are willing to pay a premium. As the market matures, competition increases, or production costs decrease, the price is reduced to attract a broader customer base.

The term can also be used in a more negative sense, referring to price gouging. This occurs when prices are raised excessively and unfairly, often in response to sudden increases in demand or shortages of essential goods and services. This can happen during emergencies, natural disasters, or other situations where consumers have limited options and are particularly vulnerable. Such practices are often subject to legal regulation and public criticism.

In the context of government policy, Preisabschöpfung can also refer to measures taken to limit excessive price increases in certain markets. For instance, price caps or regulations might be implemented to prevent companies from exploiting consumers. The specific meaning of Preisabschöpfung is therefore highly dependent on whether it is viewed from a business strategy perspective, a consumer protection standpoint, or a regulatory framework.